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Aston Bay Receives C$1.38 Million Initial Royalty Payment for the Storm Copper Project, Canada

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Aston Bay Holdings (TSXV:BAY)(OTCQB:ATBHF) has received an initial US$1 million (C$1.38 million) payment as part of a US$12.5 million (C$17.3 million) royalty package agreement for the Storm Copper Project. This agreement involves Aston Bay's joint venture partner American West Metals and TMRF Canada Inc., a subsidiary of Taurus Mining Royalty Fund L.P.

Key points:

  • Aston Bay will receive 20% of the total funding (C$3.46 million) with no use of proceeds restriction
  • Further payments include US$3.5m upon delivery of a Prefeasibility Study and US$4m upon resource increase announcement
  • The funding enables expansion of exploration and development activities at Storm
  • A maiden resource to Canadian Institute of Mining standards is being constructed
  • Environmental, mining, and development studies are underway

Aston Bay Holdings (TSXV:BAY)(OTCQB:ATBHF) ha ricevuto un pagamento iniziale di 1 milione di USD (1,38 milioni di CAD) come parte di un accordo per un pacchetto di royalty del valore di 12,5 milioni di USD (17,3 milioni di CAD) relativo al Progetto Storm Copper. Questo accordo coinvolge il partner di joint venture di Aston Bay, American West Metals, e TMRF Canada Inc., una sussidiaria del Taurus Mining Royalty Fund L.P.

Punti chiave:

  • Aston Bay riceverà il 20% del finanziamento totale (3,46 milioni di CAD) senza restrizioni sull'uso dei proventi
  • I pagamenti successivi includono 3,5 milioni di USD alla consegna di uno Studio di Prefattibilità e 4 milioni di USD all'annuncio di un aumento delle risorse
  • Il finanziamento permette l'espansione delle attività di esplorazione e sviluppo a Storm
  • Una risorsa iniziale secondo gli standard dell'Istituto Canadese di Mining è in fase di costruzione
  • Studi ambientali, minerari e di sviluppo sono in corso

Aston Bay Holdings (TSXV:BAY)(OTCQB:ATBHF) ha recibido un pago inicial de 1 millón de USD (1,38 millones de CAD) como parte de un acuerdo de paquete de regalías de 12,5 millones de USD (17,3 millones de CAD) para el Proyecto Storm Copper. Este acuerdo involucra al socio de la empresa conjunta de Aston Bay, American West Metals, y TMRF Canada Inc., una subsidiaria de Taurus Mining Royalty Fund L.P.

Puntos clave:

  • Aston Bay recibirá el 20% de la financiación total (3,46 millones de CAD) sin restricciones sobre el uso de los ingresos
  • Los pagos posteriores incluyen 3,5 millones de USD al entregar un Estudio de Prefactibilidad y 4 millones de USD al anunciar un aumento de recursos
  • La financiación permite la expansión de las actividades de exploración y desarrollo en Storm
  • Se está construyendo un recurso inicial de acuerdo con los estándares del Instituto Canadiense de Minería
  • Estudios ambientales, mineros y de desarrollo están en curso

아스턴 베이 홀딩스 (TSXV:BAY)(OTCQB:ATBHF)는 스톰 구리 프로젝트를 위한 1250만 USD (1730만 CAD) 로열티 패키지 계약의 일환으로 100만 USD (138만 CAD)의 초기 지급금을 받았습니다. 이 계약은 아스턴 베이의 조인트 벤처 파트너인 아메리칸 웨스트 메탈스와 타우루스 마이닝 로열티 펀드 L.P.의 자회사인 TMRF 캐나다를 포함합니다.

주요 사항:

  • 아스턴 베이는 총 자금의 20% (346만 CAD)를 사용 제약 없이 받게 됩니다.
  • 추가 지급금에는 타당성 조사 제출 시 350만 USD와 자원 증가 발표 시 400만 USD가 포함됩니다.
  • 이 자금은 스톰에서 탐사 및 개발 활동의 확장을 가능하게 합니다.
  • 캐나다 광업 연구소 기준에 따른 최초 자원이 구축되고 있습니다.
  • 환경, 채굴 및 개발 연구가 진행 중입니다.

Aston Bay Holdings (TSXV:BAY)(OTCQB:ATBHF) a reçu un paiement initial de 1 million USD (1,38 million CAD) dans le cadre d'un accord de paquet de redevances d'une valeur de 12,5 millions USD (17,3 millions CAD) pour le projet Storm Copper. Cet accord implique le partenaire de coentreprise d'Aston Bay, American West Metals, et TMRF Canada Inc., une filiale de Taurus Mining Royalty Fund L.P.

Points clés :

  • Aston Bay recevra 20 % du financement total (3,46 millions CAD) sans restriction sur l'utilisation des fonds
  • Les paiements ultérieurs comprennent 3,5 millions USD à la livraison d'une étude de préfaisabilité et 4 millions USD lors de l'annonce d'une augmentation des ressources
  • Le financement permet l'expansion des activités d'exploration et de développement à Storm
  • Une ressource initiale selon les normes de l'Institut canadien des mines est en cours de construction
  • Des études environnementales, minières et de développement sont en cours

Aston Bay Holdings (TSXV:BAY)(OTCQB:ATBHF) hat eine erste Zahlung von 1 Million USD (1,38 Millionen CAD) im Rahmen eines 12,5 Millionen USD (17,3 Millionen CAD) Lizenzpaketvertrags für das Storm Copper-Projekt erhalten. Dieser Vertrag umfasst Aston Bays Joint-Venture-Partner American West Metals und TMRF Canada Inc., eine Tochtergesellschaft des Taurus Mining Royalty Fund L.P.

Wichtigste Punkte:

  • Aston Bay erhält 20% der Gesamtkapitalisierung (3,46 Millionen CAD) ohne Einschränkungen zur Verwendung der Mittel
  • Weitere Zahlungen umfassen 3,5 Millionen USD bei Lieferung einer Voruntersuchung und 4 Millionen USD bei Bekanntgabe einer Ressourcensteigerung
  • Die Finanzierung ermöglicht die Expansion der Explorations- und Entwicklungsaktivitäten in Storm
  • Eine erste Ressource nach den Standards des Canadian Institute of Mining wird erstellt
  • Umwelt-, Bergbau- und Entwicklungsstudien sind im Gange
Positive
  • Receipt of initial US$1 million (C$1.38 million) payment from royalty package
  • Potential for additional C$2 million in non-dilutive funding
  • No use of proceeds restriction on Aston Bay's 20% allocation
  • Expansion of 2024 drill program and investment in 2025 field activities
  • Advancement towards Prefeasibility Study anticipated in early 2025
Negative
  • None.

First payment received from a total C$3.46 million allocated to Aston Bay with no use of proceeds restriction

TORONTO, ON / ACCESSWIRE / October 22, 2024 / Aston Bay Holdings Ltd. (TSXV:BAY)(OTCQB:ATBHF) ("Aston Bay" or the "Company") is pleased to announce that it has received the initial US$1 million (C$1.38 million1) in funding as part of an agreement with the Company's joint venture partner American West Metals Limited ("American West") and TMRF Canada Inc., a subsidiary of Taurus Mining Royalty Fund L.P. ("Taurus"), whereby Taurus will provide funding of up to US$12.5 million (C$17.3 million[1]) under a royalty package for the Storm Copper Project.

Aston Bay and American West have formed a 20/80 unincorporated joint venture in respect of the Storm Project property, with Aston Bay maintaining a free carried interest until a decision to mine upon completion of a bankable feasibility study. Aston Bay will be allocated 20% of the funding from the royalty package (C$3.46 million[1]) with no use of proceeds restriction.

Highlights

  • The first payment of US$5m (C$6.9m1) under the royalty package has been advanced to American West and Aston Bay

  • Further payments to the royalty package are:

    • US$3.5m (C$4.9m1) upon delivery of a Prefeasibility Study (PFS) for Storm and submission of permitting documents for development at Storm

    • US$4m (C$5.5m1) upon announcement of an increase in the JORC-compliant resource for Storm to at least 400,000 tonnes of contained copper at a resource grade of at least 1.00% Cu

  • Funding under the royalty package will be allocated to American West and Aston Bay in accordance with their respective interests under the unincorporated joint venture for Storm, being 80% for American West and 20% for Aston Bay

  • There is no use of funds restriction for Aston Bay, providing a non-dilutive source of funds to advance the Company's other projects and contribute to Aston Bay's robust balance sheet

  • The funding has enabled an expansion of the exploration and development activities conducted by American West at Storm, including:

    • Expansion of the 2024 drill program, which will underpin a maiden resource currently being constructed to Canadian Institute of Mining standards, as well as a significant anticipated upgrade to the American West's JORC-compliant estimate

    • An investment in the 2025 field activities with bulk supplies being delivered to site by ship charter - saving approximately C$4 million on the potential logistics costs for the 2025 program

    • Completion of environmental, mining and development studies - including detailed testwork that supports the potential for a direct shipping operation - which will support the delivery of a PFS anticipated in early 2025

[1] Based on USD:CAD exchange rate of 1:1.3838.

Thomas Ullrich, Chief Executive Officer of Aston Bay,commented:

"We are very pleased with the efforts of our partner American West and with this investment in Storm by Taurus. The recognition of the value of the Storm Project by such a well-respected international mining royalty company is a strong endorsement of the potential of the Project.

"The royalty financing provides significant funding and is structured to promote the rapid advancement of the Storm Copper Project. American West continues to actively advance the Project, with goals set to achieve the remaining two milestones in the royalty funding agreement within the next six to twelve months.

"This could bring an additional C$2 million to Aston Bay for a potential total of C$3.46 million non-dilutive funds to advance our other critical minerals and gold exploration projects."

For further details on the royalty package under the Taurus arrangement, see Aston Bay's June 24, 2024 news release.

About Aston Bay Holdings

Aston Bay is a publicly traded mineral exploration company exploring high-grade critical and precious metal deposits in Nunavut, Canada and Virginia, USA.

The Company is currently exploring the Storm Copper Property and Cu-Ag-Zn-Co Epworth Property in Nunavut. The Company is also in advanced stages of negotiation on other lands with high-grade critical and precious metals potential in North America.

The Company and its joint venture partners, American West Metals Limited and its wholly-owned subsidiary, Tornado Metals Ltd. (collectively, "American West"), have formed a 20/80 unincorporated joint venture in respect of the Storm Project property, which hosts the Storm Copper Project and the Seal Zinc Deposit. Under the unincorporated joint venture, Aston Bay shall have a free carried interest until American West has made a decision to mine upon completion of a bankable feasibility study, meaning American West will be solely responsible for funding the joint venture until such decision is made. After such decision is made, Aston Bay will be diluted in the event it does not elect to contribute its proportionate share and its interest in the Storm Project property will be converted into a 2% net smelter returns royalty if its interest is diluted to below 10%.

About American West Metals Limited

AMERICAN WEST METALS LIMITED (ASX:AW1) is an Australian clean energy mining company focused on growth through the discovery and development of major base metal mineral deposits in Tier 1 jurisdictions of North America. The company's strategy is focused on developing mines that have a low-footprint and support the global energy transformation. AW1's portfolio of copper and zinc projects in Utah and Canada include significant existing resource inventories and high-grade mineralization that can generate robust mining proposals. Core to AW1's approach is a commitment to the ethical extraction and processing of minerals and making a meaningful contribution to the communities where its projects are located.

Led by a highly experienced leadership team, AW1's strategic initiatives lay the foundation for a sustainable business which aims to deliver high-multiplier returns on shareholder investment and economic benefits to all stakeholders.

For further information on American West, visit: www.americanwestmetals.com.

FORWARD-LOOKING STATEMENTS

Statements made in this news release, including those regarding entering into the joint venture and each party's interest in the Project pursuant to the agreement in respect of the joint venture, management objectives, forecasts, estimates, expectations, or predictions of the future may constitute "forward-looking statement", which can be identified by the use of conditional or future tenses or by the use of such verbs as "believe", "expect", "may", "will", "should", "estimate", "anticipate", "project", "plan", and words of similar import, including variations thereof and negative forms. This press release contains forward-looking statements that reflect, as of the date of this press release, Aston Bay's expectations, estimates and projections about its operations, the mining industry and the economic environment in which it operates. Statements in this press release that are not supported by historical fact are forward-looking statements, meaning they involve risk, uncertainty and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Although Aston Bay believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which apply only at the time of writing of this press release. Aston Bay disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by securities legislation.

Neither TSX Venture Exchange nor its regulation services provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For more information contact:

Thomas Ullrich, Chief Executive Officer
thomas.ullrich@astonbayholdings.com
(416) 456-3516

Sofia Harquail, IR and Corporate Development
sofia.harquail@astonbayholdings.com
(647) 821-1337

SOURCE: Aston Bay Holdings Ltd.



View the original press release on accesswire.com

FAQ

What is the total value of the royalty package for the Storm Copper Project?

The total value of the royalty package for the Storm Copper Project is up to US$12.5 million (C$17.3 million).

How much of the royalty package funding will Aston Bay (ATBHF) receive?

Aston Bay will receive 20% of the total funding, which amounts to C$3.46 million, with no use of proceeds restriction.

What are the upcoming milestones for additional payments in the royalty package?

The upcoming milestones are US$3.5m upon delivery of a Prefeasibility Study and submission of permitting documents, and US$4m upon announcement of an increase in the JORC-compliant resource to at least 400,000 tonnes of contained copper at a grade of at least 1.00% Cu.

When is the Prefeasibility Study (PFS) for the Storm Copper Project expected to be delivered?

The Prefeasibility Study (PFS) for the Storm Copper Project is anticipated to be delivered in early 2025.

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